Cummins to acquire Meritor

Cummins announced today plans to buy Meritor for US£3.7 billion, or US£36.50 a share. "The acquisition of Meritor is an important milestone for Cummins. Meritor is an industry leader, and the addition of their complementary strengths will help us address one of the most critical technology challenges of our age: developing economically viable zero carbon solutions for commercial and industrial applications," said Tom Linebarger, chairman and CEO, Cummins. "Climate change is the existential crisis of our time and this acquisition accelerates our ability to address it.

Our customers need economically viable decarbonized solutions."

"In addition, our communities and our planet depend on companies like Cummins to invest in and develop these solutions," Linebarger added. This acquisition adds products to our components business that are independent of powertrain technology, and by leveraging our global footprint we expect to accelerate the growth in Meritor's core axle and brake businesses." Cummins says the deal will position it to offer integrated powertrains across combustion and electric power applications, including e-axles.

"This agreement with Cummins builds on Meritor's track-record of outstanding performance and service to our customers.

Our offerings will continue to play an important, strategic role as commercial vehicles transform to become electric and autonomous," said Chris Villavarayan, CEO and president of Meritor.